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FRS5500 | Addressing risks and assurance: Are FRS businesses liable for misdeclaration penalties?

From HM Revenue & Customs · VAT Flat Rate Scheme

Yes, as the law applies to all businesses. However, the fact that FRS businesses declare a net liability without computing input tax and output tax means that they are more liable to trigger Gross Amount of Tax (GAT) tests than other businesses.

This means that when a penalty output document D2211 is received you must consider very carefully whether it is appropriate to apply a Misdeclaration Penalty (MP) or Repeated Misdeclaration Penalty (MPR) penalty.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) VCP10700 - Misdeclaration Penalty(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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